Why prices are so different?

[vpharris]

Originally posted by Andypairo
Do you know why here in Europe some (I'd say almost everythinhg) hi-fi related items have so different prices compared to USA?


Even considering taxes it is clear that in Europe such items are a bit overpriced, don't you think?

Cheers

Andrea

You may not like this explanation, but I think that Europeans as a group basically like it that way. They have elected governments that:

- Pass laws supporting social programs placing a big burden on employers. In Germany for instance, unemployment is about 11% because it's better not to work than to take a job with modest compensation, and employers see employees as a huge potential liability (it's extremely expensive to fire someone if they're a poor performer or if business contracts).

- Have enacted EU legislation (the CE thing) that discourages competition from outside Europe, especially the US.

Additionally, the current currency exchange rates make prices in US low relative to Europe. The exchange rate has shifted by something like 16% (I believe) in the past year making US dollar denominated goods appear much cheaper.

[pinkmouse]

Just as a matter of curiosity, we in the UK pay 17.5% VAT, (purchase tax), what do you pay in the States?

[vpharris]

Taxes are levied by the states (not Federal Government) on consumption, and they vary significantly. 0% in some places (New Hampshire and Delaware come to mind) and up to about 8 or 9% in New York. Actually, there, the city is responsible for 1 or 2% of that. Typically in the 5-6% range. Your prices are quoted with the VAT included, whereas ours are without the sales tax. If we buy something from another state by mail, we don't generally pay tax. Though our own state would like to have it, they don't have any way to collect it, exc. for automobiles and such that get registered with our home state.

[grimberg]

Originally posted by pinkmouse
Just as a matter of curiosity, we in the UK pay 17.5% VAT, (purchase tax), what do you pay in the States?

Sales taxes vary by state and county. In Southern California for example, Orange county charges 7.75% sales tax whereas in the neighbor Los Angeles county, sales taxes are 8.25%.

[sam9]

I used to work for a company with sites in both the US and the EU. Both locations imported materials from Japan. There was almost no import duties bringing it in to the US. Into the EU the duties added 25% to the cost. On top of EU fees, there were also German fees.

I can only guess that the EU feels more threatened by Japanese competion than we do.

[Rino odorico]

%15 sales tax!!

[bknauss]

0% sales tax in Delaware. Wouldn't want to live there though...